Welcome to Project Management Questions!

You can ask any question on Project Management and you can rest assured that real Project Managers will answer your shortly!

What is cost baseline?

0
votes
What exactly is cost baseline, and what is the difference between cost baseline and the schedule baseline?

Is it possible to provide me with an example of the cost baseline?
asked 6 years ago by anonymous

2 Answers

+1
vote
A cost baseline is a snapshot of the expected costs throughout the project, in other words, a cost baseline is a time-phased budget.

I think the definition is still not clear, let me explain through an example. In every project schedule, you can view at any moment during the project what the expected costs are, for example, in a construction project, let's say that according to your schedule, that by week 15 of the project (when the excavation is done), the cost so far should be $1 million, but in reality, the project has costed you more, so when you compare your actual costs to the cost baseline, you will know if your project is now over budget, on budget, or under budget (this is very similar to calculating the Cost Performance Index, or CPI).

Note that if you introduce changes to your project, then your cost baseline will change, and you will need to take another snapshot to compare the actual cost to the planned cost.

The cost baseline is actually a subset of the project baseline (there are 3 project baselines: cost baseline, schedule baseline, and scope baseline).
answered 6 years ago by anonymous
0
votes
Better to understand what is a 'baseline' first, then you can figure out what is the difference by yourself.
answered 6 years ago by abeetha (360 points) edited 6 years ago by humblepm

Related questions

0
votes
0
answers
0
votes
1
answer
asked 5 years ago by anonymous
0
votes
1
answer
asked 6 years ago by anonymous
0
votes
0
answers
asked 6 years ago by anonymous
© 2010 - 2012 Project Management Questions - All Rights Reserved